XML 73 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Dispositions, Assets Held for Sale and Discontinued Operations
 3 Months Ended
Sep. 30, 2012
Disclosure Dispositions, Assets Held for Sale and Discontinued Operations [Abstract]  
Dispositions, Assets Held for Sale and Discontinued Operations

5. Dispositions, Assets Held for Sale and Discontinued Operations

During the nine months ended September 30, 2012, we sold 42 properties for net gains of $46,046,000. Of our total sale proceeds, $152,495,000 was deposited in an Internal Revenue Code Section 1031 exchange escrow account with a qualified intermediary and, during the nine months ended September 30, 2012, we used $84,243,000 of the deposited proceeds for acquisitions. At September 30, 2012, we had 31 seniors housing facilities that satisfied the requirements for held for sale treatment and such properties were properly recorded at the lesser of their estimated fair value less costs to sell or carrying value. During the nine months ended September 30, 2012, we recorded an impairment charge of $6,952,000 related to five held for sale seniors housing triple-net facilities to adjust the carrying values to estimated fair values less cost to sell based on current sales price expectations. The following is a summary of our real property disposition activity for the periods presented (in thousands):

   Nine Months Ended
   September 30, 2012 September 30, 2011
Real property dispositions:        
 Seniors housing triple-net  $ 149,984  $ 129,725
 Medical facilities    106,347    35,295
 Total dispositions    256,331    165,020
Add: Gain (loss) on sales of real property, net    46,046    56,565
Proceeds from real property sales  $ 302,377  $ 221,585

We have reclassified the income and expenses attributable to all properties sold prior to and held for sale at September 30, 2012 to discontinued operations. Expenses include an allocation of interest expense based on property carrying values and our weighted average cost of debt. The following illustrates the reclassification impact as a result of classifying properties as discontinued operations for the periods presented (in thousands):

    Three Months Ended  Nine Months Ended
    September 30,  September 30,
   2012 2011 2012 2011
Revenues:            
 Rental income $ 8,441 $ 14,147 $ 33,287 $ 51,117
Expenses:            
 Interest expense   1,663   3,382   6,669   11,387
 Property operating expenses   219   944   1,099   4,331
 Provision for depreciation   708   4,058   6,190   14,838
Income (loss) from discontinued operations, net $ 5,851 $ 5,763 $ 19,329 $ 20,561